Market Roundup
• Sterling back under pressure near $1.29
• Russia Central Bank Reserves (USD) 549.0B, 548.7B previous
• U.S.Continuing Jobless Claims 1,719K, 1,725K previous
• U.S.Initial Jobless Claims 222K, 224K forecast, 235K previous
• U.S. Jobless Claims 4-Week Avg 228.00K , 225.75K previous
• Brazil Foreign Exchange Flows -13.690B, -8.241B previous
Looking Ahead - Economic Data (GMT)
• 23:30 Japan Nov Jobs/applications Ratio 1.57 forecast, 1.57 previous
• 23:30 Japan Dec Tokyo Core CPI (YoY) 0.6% forecast,0.6% previous
• 23:30 Japan Dec Tokyo CPI (YoY) 0.8% previous
• 23:30 Japan Dec CPI Tokyo Ex Food and Energy (MoM) 0.3% previous
• 23:50 Japan Nov Unemployment Rate 2.4% forecasts, 2.4%
• 23: 50 Japan Nov Industrial Production (MoM) -1.4%, -4.5% previous
• 23: 50 Japan Dec Industrial Production forecast 1m ahead (MoM) -1.5% previous
• 23: 50 Japan Nov Retail Sales (YoY) -1.7% forecast, -7.0% previous
• 01:30 Chinese Nov Industrial profit (YoY) -9.90% previous
• 01:30 Chinese Nov Chinese Industrial profit YTD -2.9% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Thursday, as euro benefited from optimism about improved U.S.-China trade relations. Euro tend to do well when optimism grows over global trade and China’s economy. The United States and China have announced phase one of a trade deal and markets, despite a lack of details, see the agreement as a de-escalation in their long-running trade dispute. The euro was at $1.1106, up 0.20% after slipping 0.4% last week. Immediate resistance can be seen at 1.1115 (11 DMA), an upside break can trigger rise towards 1.1142 (200 DMA).On the downside, immediate support is seen at 1.1080 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The British pound strengthened against dollar on Thursday, as investors remained under sidelines on holiday-thinned trade as concern ahead Brexit talks remained . The pound has fallen since Prime Minister Boris Johnson ruled out extending the transition period before Britain leaves the European Union beyond December 2020. Many worry that leaves too little time to negotiate a new trade deal with the EU. The pound was up 0.1% at $1.3012, above a low of $1.2897 hit on Monday. Immediate resistance can be seen at 1.3083 (9 DMA), an upside break can trigger rise towards 1.3102 (11 DMA).On the downside, immediate support is seen at 1.2963 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level ).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, as Canadian dollar was supported by oil prices after a report showed U.S. crude inventories fell last week. The American Petroleum Institute, an oil industry group, said late on Tuesday that U.S. crude stocks fell by 7.9 million barrels last week, much more than the decline forecast by analysts.. At (21:22 GMT), the Canadian dollar was trading 0.43% higher at 1.3106 to the greenback. The currency traded in a range of 1.3157to 1.3100. Immediate resistance can be seen at 1.3140 (5 DMA), an upside break can trigger rise towards 1.3200 (21 DMA).On the downside, immediate support is seen at 1.3107 (Daily low), a break below could take the pair towards 1.3073 (Oct 29th low).
USD/JPY: The dollar gained against the Japanese yen on Thursday, as dollar gained on hopes of easing trade tensions between the United States and China and a pick up in the global growth. Global currency markets remained in holiday mood following Christmas Day on Wednesday and with several centres still closed for Boxing Day on Thursday. The dollar was 0.2% higher at 109.63 yen and within a striking distance of a six-month high of 109.73 touched earlier this month. Strong resistance can be seen at 109.74 (Dec 2nd high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.16 (21 DMA), a break below could take the pair towards 108.93 (50 DMA).
Equities Recap
The Nasdaq breached the 9,000-point mark for the first time and the S&P 500 hit a fresh record high on Thursday, boosted by optimism over U.S.-China trade relations and gains in Amazon.com after a report signaled robust online holiday sales.
At (GMT 1956),Dow Jones was last trading up by 0.18 percent, S&P 500 was last trading up 0.33 percent, Nasdaq was last trading up by 0.64 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday after the Treasury Department sold $32 billion in seven-year notes to strong demand, with volumes light as many traders and investors were away after Wednesday’s Christmas Day.
Seven-year yields have increased to 1.83% from a three-year low of 1.41% on Sept. 3 as risk appetite improved on optimism of a trade deal between China and the United States.
Commodities Recap
Gold prices climbed to their highest in nearly two months on Thursday as lingering uncertainty around the signing of the "phase one" Sino-U.S. trade deal bolstered demand for safe-haven metal.
The spot gold price rose 0.4% to $1,504.63 per ounce by 1308 GMT. Prices hit their highest since Nov. 5 earlier in the session at $1,507.13. U.S. gold futures was up 0.4% at$1,510.60 per ounce.
Oil prices rose about 1% to the highest in more than three months on Thursday, buoyed by hopes of an end to the China-U.S. trade fight and by a report showing lower U.S. crude inventories.
Brent crude futures were up 70 cents, or 1%, to $67.90 a barrel by 1:50 p.m. EST (1850 GMT). U.S. West Texas Intermediate crude futures gained 65 cents, or 1.1%, to $61.76. Both benchmarks were their strongest since Sept. 17.
